Treasuries have clawed back.........>

US TSYS SUMMARY: Treasuries have clawed back earlier losses and are stronger on

the day across the board going into the close Tuesday.

- Jun 10-Yr futures (TY)  up 3.5/32 at 124-14 on decent volume (>1.7mln).

- Fairly flat on the cash curve. The 2-Yr yield is up 1.2bps at 2.2537%, 5-Yr up

1bps at 2.1882%, 10-Yr up 1.1bps at 2.4089%, and 30-Yr up 0.8bps at 2.8693%.

- No single trigger for the afternoon's up move in terms of risk-off headlines,

though weak data out earlier in the session contributed to the positive tone for

Tsys.

- Feb housing starts -8.7% TO 1.162M vs 1.205M MNI Median; Conference Board Mar

consumer confidence down to 124.1 vs 131.4 in Feb.

- San Fran Fed's Daly said earlier that inflation expectations drifting lower

bear close watching as it both raises the risk of deflation and hurts the Fed's

credibility.

- Fairly quiet schedule overnight. Wednesday sees trade/current account data and

KC Fed's George speak after the close.